Gold Price Today, August 27: Gold prices rose on Thursday (August 27), trading above the USD 4,600-per-ounce mark, supported by a weaker US dollar and easing inflation concerns amid softer energy prices. Market participants are now turning their attention to Federal Reserve Chairman Kevin Warsh’s address at the Jackson Hole Symposium for clues on the central bank’s interest-rate outlook.
As of 5:40 am IST, spot gold was up 0.5 per cent, or USD 22, at USD 4,616.70 an ounce. The yellow metal had declined 1 per cent in the previous session after US inflation data came broadly in line with expectations.
Spot silver also mirrored the trend, rising 0.9 per cent, or USD 0.60, to USD 68.70 an ounce.
MCX gold, silver futures
On the domestic front, gold and silver futures were not trading at the time of writing. On Wednesday, gold and silver futures on the Multi Commodity Exchange (MCX) settled at around Rs 1,59,000 per 10 grams and Rs 2,39,000 per kg, respectively.
Weak dollar, softer oil support bullion
The US dollar traded weaker on Thursday after rising above the 99 mark following the latest US economic data. A weaker dollar makes gold cheaper for holders of other currencies, potentially boosting demand for the precious metal.
Crude oil prices also eased, with Brent futures down 0.2 per cent, or USD 0.20, at USD 86.38 a barrel. WTI futures were 0.7 per cent lower at around USD 82 a barrel.
Lower oil prices can help ease inflationary pressures, potentially reducing expectations of tighter monetary policy and improving the appeal of non-yielding assets such as gold.
Fed rate outlook in focus
According to the CME FedWatch tool, markets were pricing in a 37 per cent probability of a rate hike at the September FOMC meeting.
Gold came under pressure in the previous session after US inflation data was broadly in line with expectations. The Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s preferred inflation gauge, rose 3.7 per cent in the 12 months through July, the Commerce Department’s Bureau of Economic Analysis said on Wednesday. Economists polled by Reuters had forecast a 3.6 per cent increase.
Kevin Warsh speech, US-Iran tensions eyed
Alongside Warsh’s address at Jackson Hole, investors are also monitoring geopolitical developments between the US and Iran.
Iran and Oman are continuing to work on details of an agreement concerning the Strait of Hormuz, a senior Iranian source said on Wednesday. Any escalation around the key oil-shipping route could have implications for energy prices, inflation expectations and, in turn, bullion markets.
